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Thorne v. Square Inc.

Payment 'App's' Sign-In Flows Put Users on Inquiry Notice of Terms of Service, Arbitration

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MEMORANDUM & ORDER Defendants Square, Inc. and Sutton Bank offer their users a mobile payment platform called “Cash App” and “Cash Card.” Plaintiffs allege that they were Cash App and Cash Card users, that funds were fraudulently withdrawn from their Cash App and Cash Card account by third parties, and that Defendants’ dispute resolution process to address their complaints is inadequate and improperly places the burden on the user to prove that a disputed transaction was unauthorized. As a result, Plaintiffs assert causes of action on behalf of themselves and others similarly situated under the Electronic Fund Transfers Act, 15 U.S.C. §1693 and N.Y. Gen. Bus. Law §349. Defendants respond that Plaintiffs agreed to individually arbitrate any dispute involving their Cash App and Cash Card accounts. They now move pursuant to the Federal Arbitration Act (“FAA”), 9 U.S.C. §1, et seq., to compel arbitration and dismiss the complaint. For the reasons that follow, Defendants’ motion is GRANTED. I. BACKGROUND A. Record on Review Defendants submit declarations from Eric Muller and Chun Wah Wu, mobile engineers employed by Square who are familiar with Cash App and Cash Card services. (Decl. of Eric Muller (“Muller Decl.”) (Dkt. 35-2); Decl. of Chun Wah Wu (“Wu Decl.”) (Dkt. 35-9).) Muller and Wu represent that Defendants maintained records of when and how its users registered for its services. (Muller Decl.

4-5; Wu Decl.

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